The European Commission fined Alphabet's Google €890 million ($1.45 billion) on July 23, 2026, for breaching the Digital Markets Act (DMA) through anti-competitive self-preferencing in search results and restrictions on Google Play.

One €460 million ($750 million) penalty addresses Google's display of its own services above rivals in shopping, hotels, transport and sports results. A second €430 million ($700 million) fine targets app-store rules blocking developers from steering users to cheaper offers elsewhere.

How will hotel distribution change?

Hotels and flights sit at the heart of the ruling. Booking.com, Expedia, hotel chain direct sites and metasearch platforms have long competed with Google's first-position vertical placements for queries such as "hotels in Barcelona" or "flights to Berlin."

A binding order to scrap that self-preferencing could lift organic visibility for OTAs and direct-booking channels. Google has already proposed and started testing redesigned result formats for shopping, hotels and flights.

What has the Commission said?

EU tech chief Henna Virkkunen told reporters: "The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition."

EU antitrust chief Teresa Ribera addressed US pressure more bluntly: "Our duty and obligation is to comply with the laws, that our laws are fully respected."

How has Google responded?

Google President of Global Affairs Kent Walker attacked the decision. "To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play," he said in a statement.

Walker called the ruling "product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit." Google signalled it could take the Commission to court.

Are more fines coming?

The Commission pointed to a "constructive dialogue" with Google and substantial compliance progress, making daily non-compliance penalties unlikely. The watchdog also noted Google may apply the principles of the ruling to AI Overviews and AI Mode, where AI-generated summaries already shape hotel and travel queries.

Where does this leave Google?

The two fines are the third DMA action after penalties handed to Apple and Meta Platforms in April 2025. Google's total EU antitrust bill now stands at €10.38 billion ($17 billion) across nearly two decades.

What happens next?

Google has 60 days from the decision to implement compliant search-result treatments and Google Play steering terms. The Commission will assess the live testing phases through late 2026, with potential follow-up rulings covering AI-generated search formats expected as the review concludes.